Source: European Parliament
The Commission is committed to preserving manufacturing in Europe while ensuring a just transition and sustainable competitiveness. It is following with high attention and concern the recent developments in the EU automotive industry.
The EU is supporting the automotive industry by tackling supply chain difficulties with the Critical Raw Materials Act[1], the Net-Zero Industry Act[2], Battery Regulation[3] and the Chips Act[4] as well as raw materials partnerships[5].
It has defined a regulatory environment to encourage the transition to smart mobility with the Sustainable and Smart Mobility Strategy[6], the AI Act[7], the Data Act[8] and the Cyber Resilience Act[9]. The EU also provides substantial financial support for the industry’s transformation to electromobility along the whole value chain[10].
Moreover, the EU has put a robust framework in place for the transition to zero-emission mobility by setting binding CO2 targets[11] for vehicle manufacturers, which are complemented by measures aimed to ensure a fair transition[12], while recognising that further initiatives are needed to strengthen the EU’s just transition policy framework[13], with a focus on anticipation and management of change.
For instance, the Commission will monitor the socioeconomic impacts of these measures with a first progress report in 2025, including on adequate financial measures to ensure a just transition and to mitigate any negative impacts, in particular in the regions and the communities most affected.
The Commission has taken note of the analysis of the automotive industry’s challenges in the Draghi report[14] and will consider further measures in the context of the announced future industrial action plan for the automotive industry.
- [1] https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=OJ:L_202401252
- [2] https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=OJ:L_202401735
- [3] https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32023R1542
- [4] https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32023R1781. The Chips Act has spurred substantial industry investment in semiconductor manufacturing capacity, which is crucial for advancing both the electrification and digitalisation of the automotive industry: https://digital-strategy.ec.europa.eu/en/news/commission-approves-eu5-billion-german-state-aid-measure-support-esmc-setting-new-semiconductor
- [5] https://single-market-economy.ec.europa.eu/sectors/raw-materials/areas-specific-interest/raw-materials-diplomacy_en
- [6] https://transport.ec.europa.eu/transport-themes/mobility-strategy_en
- [7] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ%3AL_202401689
- [8] https://eur-lex.europa.eu/eli/reg/2023/2854
- [9] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex:52022PC0454
- [10] Funding from the Recovery and Resilience Facility (RRF), to support for instance the conversion of automotive plants and national schemes to incentivise fleet renewal (e.g. https://www.mintur.gob.es/en-us/recuperacion-transformacion-resiliencia/paginas/perte.aspx; https://commission.europa.eu/business-economy-euro/economic-recovery/recovery-and-resilience-facility/germanys-recovery-and-resilience-plan/germanys-recovery-and-resilience-supported-projects-nation-wide-investment-scheme_en) and funding from the Connecting Europe Facility (CEF) to support the deployment of charging infrastructure (https://transport.ec.europa.eu/news-events/news/commission-makes-eu1bn-available-recharging-and-refuelling-points-under-connecting-europe-facility-2024-02-29_en).
- [11] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32023R0851, https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32019R0631
- [12] https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32022H0627(04), implemented notably in the context of the European Semester and the Energy Union and Climate Action Governance Regulation.
- [13] E.g. European Parliament resolution on job creation — the just transition and impact investments, 2022/2170(INI), 23 November 2023, https://www.europarl.europa.eu/doceo/document/TA-9-2023-0438_EN.html
- [14] https://commission.europa.eu/topics/strengthening-european-competitiveness/eu-competitiveness-looking-ahead_en